Capital Immobility, Informal Sector And Urban Unemployment
AbstractWe consider a three sector model of informal sector which assumes efficiency wage hypothesis and explains the simultaneous existence of informal sector and urban unemployment. We also study the effects of subsidy policies given to different sectors and the effects of change in capital stock on urban unemployment and domestic factor income.
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Date of creation: 05 Nov 2005
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Capital immobility; informal sector; urban unemployment;
Find related papers by JEL classification:
- C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- D9 - Microeconomics - - Intertemporal Choice and Growth
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